Protocol Fees

How $USA holders can activate value capture

Zero-Fee Launch

Manifest launches without protocol fees. All value generated by the ~10-12% spread between HEI returns and NAV growth flows directly to $sUSH stakersafter expenses. This demonstrates the protocol's sustainable economics — real returns from real assets support operations without extracting fees.

The Fee Switch

Governance-Controlled Activation

$USA holders possess exclusive rights to permit protocol fees through governance votes. This mechanism ensures fees only exist when governance token holders actively participate in protocol oversight. The specific governance rights include:

• Voting to permit Manifest to charge fees on $USH

• Authorizing new token types that may generate fees

Fee Implementation Mechanics

The Trade-Off

Activating fees creates a direct trade-off:

• Before fees: 100% of excess returns flow to $sUSH holders

• After fees: Returns reduced by activated fee amounts

• Impact: Each 1% fee reduces staking yields by equivalent amount

This transparent mechanism ensures all participants understand exactly how protocol fees affect returns.

Alignment Mechanisms

Long-Term Value Creation

The fee structure aligns $USA holders with protocol success:

• Fees only valuable if protocol grows

• Higher TVL generates more revenue

• Better performance enables fee sustainability

• Growth benefits all participants

Governance Participation

Fee activation requires active governance:

• Proposal submission and discussion

• Community debate on fee levels

• Formal voting process

• Implementation only with clear mandate

This ensures fees reflect genuine community consensus.

The $USA Value Proposition

Current State

Without activated fees, $USA value derives from:

• Governance influence over growing protocol

• Control of the Reserve Pool

• Strategic positioning in ecosystem

• Community status and access

Future Potential

With activated fees, locked $USA could capture:

• Direct revenue from protocol TVL

• Compounding value as TVL grows

• Returns tied to protocol performance

• Enhanced governance importance

Considerations for Fee Activation

Market Timing

Governance should consider:

• Protocol maturity and stability

• User growth trajectory

• Market acceptance of fees

• Impact on competitiveness

Fee Calibration

Optimal fee levels balance:

• Value for $USA, $USH, and $sUSH holders

• Maintaining attractive staking yields

• Protocol growth sustainability

• User acquisition and retention